Ashe Brick Co.Download PDFNational Labor Relations Board - Board DecisionsJul 31, 1986280 N.L.R.B. 1383 (N.L.R.B. 1986) Copy Citation ASHE BRICK CO. Ashe Brick Company and Aluminum , Brick and Glass Workers International Union, Local No. 904, AFL-CIO, CLC. Case 11-CA-11839 31 July 1986 DECISION AND ORDER By CHAIRMAN DOTSON AND MEMBERS JOHANSEN AND STEPHENS On 21 April 1986 Administrative Law Judge William N . Cates issued the attached decision. The General Counsel filed limited exceptions and a sup- porting brief. The National Labor Relations Board has delegat- ed its authority in this proceeding to a three- member panel. The Board has considered the decision and the record in light of the exceptions and brief and has decided to affirm the judge's rulings, findings, and conclusions and to adopt the recommended Order as modified.' The judge found that the Respondent violated Section 8(a)(5) and (1) of the Act by withdrawing recognition from the Union as the exclusive bar- gaining representative of certain of its employees in an admittedly appropriate unit, by conditioning the signing of an agreement on the Union 's payment for damages to the Respondent 's facility, and by re- fusing to execute a written contract embodying the full and complete agreement arrived at between the parties with respect to the rates of pay, wages, hours, and other terms and conditions of employ- ment . The judge also found that the strike, which began on 6 May 1985 as an economic strike, was converted to an unfair labor practice strike on 18 October 1985, the date the Respondent withdrew recognition from the Union. In fashioning a remedy the judge found that all striking employees had been permanently replaced prior to the time the strike was converted from an economic strike to an unfair labor practice strike. He therefore declined to recommend the usual Board remedy requiring the Respondent to rein- state, on unconditional request , all striking employ- ees who had not been permanently replaced before the date the strike became an unfair labor practice strike. Instead , the judge directed the Respondent to place all employees who were on strike at the time it was converted to an unfair labor practice strike on a preferential hiring list, based on seniori- ty or some other nondiscriminatory test . The Gen- eral Counsel contends that , in view of the fact that some of the replacements were hired after the ' We note that no exceptions have been filed on the ments of the judge's decision. 1383 strike's conversion, this remedy is contrary to the Board's established policy as enunciated in Charles D. Bonanno Linen Service, 268 NLRB 552 (1984), and Larand Leisurelies, Inc., 213 NLRB 197 (1974). In particular , the record shows that at least seven employees were hired in unit positions after the strike was converted; and the General Counsel urges that the judge should have ordered those seven employees dismissed and the displaced strik- ers reinstated and made whole. We find merit in the General Counsel's exceptions. Accordingly, we substitute the following for the judge's remedy, and insert corresponding provisions in the Order. REMEDY Having found that the Respondent has engaged in certain unfair labor practices, we shall order it to cease and desist and to take certain affirmative actions designed to effectuate the policies of the Act. We have found that the Respondent violated the Act by withdrawing recognition from the Union and by refusing to bargain with the Union as the exclusive bargaining representative of its employees in an appropriate unit. To remedy these violations, we shall require the Respondent to recognize and on request bargain in good faith with the Union as the exclusive bargaining representative of its em- ployees in the appropriate unit. Additionally, as we have found that the Respondent violated its obliga- tions under the Act by refusing to execute a con- tract embodying the terms of the agreement it reached with the Union, we shall order the Re- spondent, on request, to sign such an agreement. The Respondent shall be required to give retroac- tive effect to the terms of the agreement to its ef- fective date of 28 October and to make whole its employees for any losses they may have suffered as a result of the Respondent 's refusal to sign the agreement in accordance with the formula set forth in Ogle Protection Service, 183 NLRB 682 (1970). All monetary redress shall bear interest as author- ized by Florida Steel Corp., 231 NLRB 651 (1977). On 28 October 1985, the Union requested uncon- ditional reinstatement on behalf of all employees who participated in the strike begun on 6 May 1985. The strike was converted to an unfair labor practice strike by the Respondent's violation of Section 8(a)(5) on 18 October 1985. Accordingly, we shall require the Respondent to reinstate to their former or substantially equivalent positions all strikers who were not permanently replaced before 18 October 1985 without impairment of their se- niority and other rights and privileges. In order to make room for them, the Respondent shall dismiss, if necessary, all persons hired after 18 October 280 NLRB No. 162 1364 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 1985 . If, after such dismissals , there are insufficient positions available for the remaining former strik- ers, those positions which are available shall be dis- tributed among them without discrimination be- cause of their union membership or activities or participation in the strike, in accordance with se- niority or other nondiscriminatory practice utilized by the Respondent . Those former strikers who were permanently replaced prior to conversion and for whom no employment is immediately available shall be placed on a preferential hiring list in ac- cordance with their seniority or other nondiscrim- inatory practice utilized by the Respondent, and they shall be reinstated before any other persons are hired or on the departure of their preconver- sion replacements . See Gulf Envelope Co., 256 NLRB 320 (1981), and Windham Community Me- morial Hospital, 230 NLRB 1070 (1977). The Employees entitled to immediate reinstate- ment shall be made whole for any loss of earnings they may have suffered by reason of the Respond- ent's refusal to reinstate them pursuant to their un- conditional requests by paying to each of them a sum of money equal to that which each would have earned during the period commencing on 28 October 1985 to the date of the Respondent 's offer to reinstatement, less any net earnings during such period. National Car Rental System, 237 NLRB 172 (1978). Backpay and interest shall be computed in the manner prescribed in F. W. Woolworth Co., 90 NLRB 289 (1950), and Florida Steel Corp., supra. ORDER The National Labor Relations Board adopts the recommended Order of the administrative law judge as modified to reflect the amended remedy and orders that the Respondent , Ashe Brick Com- pany, Van Wyck, South Carolina, its officers, agents, successors, and assigns , shall take the action set forth in the Order as modified. 1. Substitute the following for paragraph 2(d). "(d) Offer, on application, to all the employees engaged in an unfair labor practice strike who were not permanently replaced while economic strikers reinstatement to their former jobs or, if those jobs no longer exist , to substantially equiva- lent positions , without prejudice to their seniority or other rights and privileges, discharging, if neces- sary, any replacements hired on or after 18 Octo- ber 1985." 2. Insert the following as paragraphs 2(e) and (f) and reletter the subsequent paragraphs. "(e) Make whole employees who have made such a request for reinstatement but who have been offered reemployment for any loss of pay from date of their 28 October 1985 unconditional offer to return to work and terminating on the date of the Respondent's offer of reinstatement, in the manner set forth in the section of this decision enti- tled `The Remedy.' "(f) Place the remaining former strikers on a preferential hiring list in accordance with their se- niority or other nondiscriminatory practice utilized by the Respondent and offer them employment before any other persons are hired or on the depar- ture of any replacement hired before 18 October 1985." 3. Delete the last sentence of paragraph 2(g). 4. Substitute the attached notice for that of the administrative law judge. APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government The National Labor Relations Board has found that we violated the National Labor Relations Act and has ordered us to post and abide by this notice. Section 7 of the Act gives employees these rights. To organize To form, join, or assist any union To bargain collectively through representa- tives of their own choice To act together for other mutual aid or pro- tection To choose not to engage in any of these protected concerted activities. WE WILL NOT refuse to recognize and bargain in good faith with Aluminum , Brick and Glass Work- ers International Union, Local Union #904, AFL- CIO, CLC , as the exclusive bargaining representa- tive of our employees in the following unit: All full-time production, maintenance and shipping employees , truck drivers and helpers employed at our Van Wyck, South Carolina plant; but excluding clerical and office em- ployees, draftsmen , subcontractors and their employees, technical and professional employ- ees, guards and supervisors as defined in the Act. WE WILL NOT fail or refuse on request to exe- cute the collective-bargaining agreement agreed upon between us and the Union. WE WILL NOT condition the signing of a collec- tive-bargaining agreement on the Union paying for damages of an undetermined cause at our plant. WE WILL NOT in any like or related manner interfere with, restrain, or coerce you in the exer- ASHE BRICK CO. 1385 cise of the rights guaranteed you by Section 7 of the Act. WE WILL recognize and on request bargain in good faith with the Union as the exclusive bargain- ing representative of our employees in the unit de- scribed above. WE WILL, on request by the Union, execute the collective-bargaining agreement upon which agree- ment was reached between us and the Union. WE WILL give retroactive effect to the terms and conditions of employment of the collective-bargain- ing agreement and make whole our employees for any losses they may have suffered by reason of our failure to sign the agreement , with interest. WE WILL offer to all the employees engaged in an unfair labor practice strike who were not per- manently replaced while economic strikers, and who offered to return to work on 28 October 1985, reinstatement to their former jobs or, if those jobs no longer exist, to substantially equivalent posi- tions, without prejudice to their seniority or other rights and privileges, discharging, if necessary, any replacements hired on or after 18 October 1985. WE WILL make whole such employees for any loss of earnings and benefits they may have suf- fered, with interest, as a result of our failure to re- instate them promptly after their 28 October 1985 offer to return to work. WE WILL place the remaining former strikers on a preferential hiring list in accordance with their seniority or other nondiscriminatory practice and offer them employment before any other persons are hired or on the departure of any replacement hired before 18 October 1985. Union's paying for damages to the Company's facility and by refusing to execute a written contract embodying the full and complete agreement arrived at between the parties with respect to the rates of pay, wages, hours of employment , and other terms and conditions of employ- ment of the employees in an admittedly appropriate unit. It is also alleged that the strike at the Company, which started as an economic strike, was converted to an unfair labor practice strike at the time the Company withdrew recognition of the Union. The Company , in its answer to the complaint dated 27 December, admits various allega- tions of the complaint but denies the commission of any of the alleged unfair labor practices. I find for the Gen- eral Counsel on all issues. On the entire record, including my observation of the demeanor of the witnesses and after consideration of the General Counsel's brief, I make the following FINDINGS OF FACT 1. JURISDICTION The Company is a South Carolina corporation with a manufacturing plant located at Van Wyck, South Caroli- na, where it is engaged in the manufacture of bricks. During the year preceding issuance of the complaint the Company purchased and received at its Van Wyck, South Carolina facility goods and raw materials valued in excess of $50,000 directly from suppliers located out- side the State of South Carolina. The complaint alleges, the Company by its answer admits, and I find it is an em- ployer engaged in commerce within the meaning of Sec- tion 2(2), (6), and (7) of the Act. H. THE LABOR ORGANIZATION INVOLVED The complaint further alleges, the Company admits, and I find the Union is a labor organization within the meaning of Section 2(5) of the Act. ASHE BRICK COMPANY Paris Favors Jr., Esq., for the General Counsel. J. W Alexander, Esq., of Charlotte, North Carolina, for the Company. DECISION STATEMENT OF THE CASE WILLIAM N. CATES, Administrative Law Judge. This case was tried at Rock Hill, South Carolina, 11 February 1986.1 The charge was filed 12 November and amended 25 November and 23 December by Aluminum, Brick and Glass Workers International Union, Local Union #904, AFL-CIO, CLC (Union). The complaint, issued 24 De- cember, alleges that Ashe Brick Company (Company) violated Section 8(aX5) and (1) of the National Labor Relations Act (Act), by withdrawing recognition of the Union as the exclusive bargaining representative of cer- tain of its employees in an admittedly appropriate unit, by conditioning the signing of an agreement on the ' All dates are in 1985 unless otherwise indicated III. THE ALLEGED UNFAIR LABOR PRACTICES A. Issues This case presents a number of questions which were thoroughly litigated. The issues, generally summarized for purposes of discussion, are as follows: 1. Whether the Company lawfully withdrew recogni- tion of the Union as the exclusive bargaining representa- tive for certain of its employees in an appropriate unit. 2. Whether the Company and the Union reached a full and complete agreement covering the terms and condi- tions of employment of employees in an admittedly ap- propriate unit and whether the Company then refused to execute such an agreement. 3. Whether the Company maintained , as a prerequisite to reaching an agreement, that the Union pay $30,000 for damages to its property of an undetermined cause and, if it did so insist, whether such actions constituted a viola- tion of the Act. 4. Whether the strike, which admittedly took place, was prolonged and converted to an unfair labor practice strike by the Company 's withdrawal of recognition of the Union. 1386 DECISIONS OF NATIONAL LABOR RELATIONS BOARD B. Background The pleadings establish that on 1 September 1981 the Union was designated the exclusive bargaining represent- ative for all full-time production , maintenance , and ship- ping employees, truckdrivers and helpers employed by the Company at its Van Wyck, South Carolina facility. Since September 1981 the Company has recognized and bargained with the Union , the parties have entered into successive collective-bargaining agreements with the most recent one effective by its terms from 5 May 1984 to 5 May 1985 . The parties met on six occasions starting on 23 April to negotiate for a successor agreement. 2 The other bargaining sessions were on 1, 3, 15, and 31 May and 15 July.3 In April the Company employed 58 unit and 15 probationary employees.4 About 6 May certain employees of the Company concertedly ceased work and engaged in a strike. On 18 October the Company with- drew recognition of the Union as the exclusive bargain- ing representative of its employees. On 28 October the Union informed the Company that it was accepting the Company's contract proposals and made an uncondition- al offer on behalf of those engaging in the strike to return to work. The strike ended on 12 November. C. Current Events In setting forth the operative facts related to the bar- gaining sessions , I have relied primarily on the credited testimony of International Union Representative Jett. 5 The 23 April negotiating session was held at the Com- pany's offices in Charlotte, North Carolina.6 Those present' for the Company were Consultant Daniel, Chief Executive Officer Joe Cathey (Cathey), and Plant Man- ager Larry Huntley (Huntley). In addition to Internation- al Representative Jett, the Union was represented by Local President Sylvester Hayden (S. Hayden) along with Theodore Hayden (T. Hayden) and Raleigh Y There is no dispute concerning where the meetings were held or who represented the parties at the meetings The chief spokesperson for the Company was Industrial Consultant Richard Daniel (Daniel). Al- though Daniel is not an employee of the Company, the parties stipulated that for the purposes of this case he was an agent of the Company within the meaning of Sec. 2(13) of the Act. International Representative Dwight Jett (Jett) served as spokesperson for the Union. a The 15 July meeting was not face to face ; it was conducted through mediators from the state and Federal Government. 4 In the most recent contract between the parties, probationary em- ployees were specifically excluded from the terms and provisions of the agreement-5 Company counsel stated at trial the Company had no significant quarrel with Jett's recitation of what happened during the bargaining ses- sions except for three specific items . Those three items are : (1) what Jett said in connection with the subject of checkoff; (2) the $30,000 damages to company property; and (3) what Jett said about how many employees would go on strike . I shall address the three areas of factual concern to the Company elsewhere in this decision. a I shall not , in this decision , describe and analyze each and every pro- posal made by the two sides herein. In essence, the Company was look- ing to negotiate a contract very similar to the most recent agreement, and the Union was very interested in wages , insurance , seniority, job bidding, and checkoff. T The parties' representatives were the same at each of the meetings except Chief Executive Officer Cathey did not attend the 15 May meet- ing. Hayden (R. Hayden ).8 Jett presented the Union's pro- posals which followed the provisions of the most recent collective-bargaining agreement with suggested changes .9 The Union's proposals were discussed and the Company informed the Union it would "cost it out" their proposals and come back with their own proposals at the 1 May meeting. The parties had no contact with each other between 23 April and the 1 May meeting. On 1 May the parties again met at the Company's Charlotte, North Carolina offices. The Company present- ed its proposals which were explained by Consultant Daniel . After going over each of the Company's propos- als, the parties again reviewed the Union 's proposals. No agreement was arrived at except that the parties would meet again on 3 May. The 3 May meeting , held at the Company's offices in Charlotte, North Carolina, is the first meeting where the parties have differences (albeit in a limited respect) about what was said during bargaining . There is, however, no dispute that the parties went over both proposals. The Union did not agree to the Company's proposals, but did agree to drop certain of its own demands . The Union dropped its proposals relating to: (1) holidays-Jett ex- plained the employees needed more money, therefore, holidays were not all that important to them; (2) vaca- tion days-again, it was explained that pay was more im- portant than vacation days ; (3) shortening the probation- ary period; and (4) changing the language in the work stoppage provisions . The Union did state at this meeting that it had to have, and would strike to obtain, its pro- posals on: (1) seniority; (2) insurance; (3) wages; (4) job bidding procedures; and (5) checkoff.' ° The Company's witnesses (Daniel , Huntley, and Cathey) assert Jett stated at this meeting that a strike would not hurt the Company because only 8 to 10 employees would go on strike. Jett denied he made any such statement . S. Hayden and R. Hayden supported Jett's denial in their testimony. It is highly unlikely and very improbable that Jett made the statement attributed to him . It seems unusual that an International representative would threaten , during nego- tiations, to call a strike over certain contract demands, but then tell the other side's negotiators a strike would not hurt the other side because only a few employees would support a strike. The undisputed fact that 43 em- ployees went on strike the very first day of the strike lends credence to Jett's denial . I conclude Jett did not make the statement in issue about the number of employ. ees that would go on strike." After the talk of a strike, a Sylvester and Theodore Hayden are brothers and Raleigh Hayden is their cousin . Sylvester , Theodore, and Raleigh Hayden have worked 14, 20, and 23 years respectively for the Company. Y Prior to the first bargaining session, Jett met with the union member- ship to inquire about what was wrong with the then current agreement and to ascertain what the membership wanted changed . As a result of that meeting, the Union came up with its proposals. 1" It is undisputed that Jett expressed strong feelings about checkoff and even stated his Union would not permit him to sign a collective-bar- gaming agreement without checkoff. 11 Even if the Company 's witnesses were credited, it would not re- quire a different result on the issue of whether the Company had a good- faith doubt about the Union's continued majority status. ASHE BRICK CO. company representatives caucused and then came back and stated their proposals were "all they could do."' 2 There was no agreement between the parties and the meeting ended. On that same day (3 May) the Union held a meeting with its members at the White Oak Church in Van Wyck, South Carolina . There were approximately 40 in attendance at the meeting . Jett brought those present up to date on the status of the negotiations with the Compa- ny. A motion was made to take a strike vote. Such a vote was taken by secret ballot. Thirty-five voted to strike and three voted against such action . Jett tele- phoned Consultant Daniel from the church 's offices and told him the employees had "voted down bad" the Com- pany's proposals and asked Daniel if the Company would like to have a meeting to see if things could be worked out. Jett told Daniel he did not like "strikes" any more than anyone else . Company Consultant Daniel re- sponded to the strike authorization by telling Jett to "let her rip ." Jett then contacted the Union 's International president for sanction to strike . Thereafter he explained to the employees what was entailed in a strike . 13 Jett told the group he wanted everyone to be out there on the morning of the strike and he wanted it to be a peace- ful strike without trouble. The strike commenced at 6 a .m. on 6 May. Approxi- mately 43 employees either honored or engaged in the strike on the first day. On the second day approximately 33 employees either honored or participated in the strike. By the end of the first week 29 employees were continu- ing to strike . About 1 month later one other employee ceased striking . Twenty-eight employees continued to strike until it ended, 12 November. There were at least four pickets at each of the two gates to the plant 24 hours per day, 7 days per week , until the strike ended on 12 November.14 There was no contact between the negotiators for Company and Union from 3 until 15 May. It appears that at some point after 3 May but before 15 May the parties were contacted by Mediator Leonard Duggins (Duggins) of the Federal Mediation and Concil- iation Services and by South Carolina State Mediator Jessie Sprinkle (Sprinkle) about a meeting . A meeting, arranged by the mediators , was held at the Holiday Inn's motel in Rock Hill, South Carolina , on 15 May. Both parties stood by their earlier proposals and no agreement was reached ; however, insurance coverage and incentive pay rates were discussed. Additionally, the Company, for the first time in negotiations , raised the subject of dam- ages to its property. Consultant Daniel told Jett there la At this point in the negotiations , the Company had offered a 1-year extension of the expired contract with no wage increase . The Company had, however, agreed to one additional funeral leave day, to post a notice for job bidding, to work on an incentive pay plan , and to get "better in- surance" for the employees in September when the then-current policy expired. 18 Jett stated the employees at the Company had been organized for 20 years but had never gone on strike 14 Plant Manager Huntley acknowledged he observed 8 to 10 pickets at the gates on each of the three shifts during the times in question. 1387 had been damages in the amount of $30,00015 to compa- ny property , and stated the Company was holding the Union responsible for the damages . Daniel told Jett the Union would have to pay $30,000 to the Company as compensation for the damages before he would sign a contract with the Union . 16 Jett told Daniel the Union would not pay for the damages because he did not think the Union's people were responsible for the damages. The meeting ended with no agreement and the strike continued. Sometime prior to 31 May Mediator Duggins contact- ed the parties and arranged a meeting for that date.'' The parties met separately at the Holiday Inn's motel in Rock Hill, South Carolina, on 31 May with Mediators Duggins and Sprinkle working between the parties. The mediators had copies of both side's proposals and at- tempted to bring about movement between the parties. The mediators were not successful in their efforts; how- ever, they did bring the parties together , for approxi- mately 30 to 45 minutes, for a face-to-face discussion on the Company's incentive pay plan. There was no move- ment between the parties even after the face-to-face meeting . The meeting ended with the Company holding firm on its proposals and the Union continuing to insist on its proposals regarding insurance, wages, and check- off. The sixth and final bargaining session took place on 15 July at the Holiday Inn's motel in Rock Hill, South Carolina. The parties did not meet face to face . Media- tors Duggins and Sprinkle talked separately to both sides for approximately 45 minutes trying to see if either side would make any movement toward resolving their dif- ferences. The mediators informed both sides they did not see anything they could do at that time to facilitate movement. The meeting ended on that note. Is The Union did not attempt to make direct contact with the Company after 15 July , but rather remained in contact with the mediators on approximately a weekly basis. Daniel, in his trial testimony, stated he was con- tacted three times by the mediators between 15 July and 18 October.' 9 's Daniel stated the Company arrived at the $30,000 figure based on repairs performed (by company employees) on conveyor belts as well as lost production time. 'a Daniel stated the Company put the money amount in question on the negotiating table because it "appeared " the Union had been responsi- ble for the damages. Daniel stated the appearance of union responsibility was based on the fact there had not been any damage to the Company's property prior to the strike . Daniel said company security personnel had an "inkling" of who was responsible for the damages , but added no one from the Company ever told him that any particular person was responsi- ble. Three individuals, including R. Hayden , were arrested , but a local judge dismisad the actions for lack of evidence. 11 There was no direct contact between the parties from 15 until 31 May 's Dame] testified that as of 15 July the parties were in disagreement on approximately 12 issues , which he identified as: probationary employ- ees, funeral leave , insurance, wages, damages to company Property, temporary/seasonal employees, call-in pay, checkoff, return to work of all strikers , incentive pay, holidays , and discipline. The Company had originated counterproposals on holidays and discipline. 's In his pretrial Board affidavit dated 16 December Daniel stated Me- diator Duggins contacted him every other week trying to get the parties closer together on an agreement. 1388 DECISIONS OF NATIONAL LABOR RELATIONS BOARD On 21 September International Representative Jett held a meeting with the local union membership .20 Jett stated those in attendance were concerned that the strike had been going on for a while and nothing had been ac- complished . Jett stated he explained that if both sides held firm in their positions nothing could be done. The membership agreed to drop its demands for dues check- off and a job bidding procedure and agreed to reduce the amount of its wage increase demand from 35 to 25 cents per hour. 21 I credit Jett's testimony that he informed Mediator Duggins about the changes in the Union' s position and that he asked for a meeting with the Company. Accord- ing to Jett, scheduling problems precluded the parties from agreeing to a meeting prior to 21 October. Jett stated that after Duggins informed him that the Compa- ny22 had agreed to a 21 October meeting Jett told Local Union President S. Hayden about the agreed-to meeting date.25 Jett testified Mediator Duggins telephoned him on 17 October and told him "he didn't know what the hell was going on, but the Company was trying to back out of the meeting ." Later, Duggins informed Jett that the meeting was in fact off. Jett asked Mediators Dug- gins and Sprinkle to meet with the Union's committee on 21 October anyway because he did not want the commit- tee and membership to think he was responsible for the meeting being canceled. Jett, Duggins, and Sprinkle met with the Union's com- mittee on 21 October and reviewed the status of negotia- tions. The union committee discussed the fact that winter was approaching and decided it would be in the best in- terest of all to accept the Company's last offer . At that point, S. Hayden informed Jett he had taken a vote on the picket line and those involved had already agreed to accept the Company's last offer if they could not get anything more. On that same date , Jett and the Union's committee met with the membership at the White Oak Church in Van Wyck, South Carolina. Jett explained to the membership the options that were available to them and the group voted unanimously to accept the Company's last offer. Jett credibly testified that before he left his motel to go to the membership meeting at the church, he called his secretary and dictated a telegram to be sent to the Com- pany accepting the Company's last offer if that was what the membership voted to do. After the membership's unanimous vote to accept the Company's last offer, Jett telephoned his secretary and told her to go ahead and send the telegram he had earlier dictated. Jeff's secretary told him that just 20 minutes before his second call she had received a call from the International 's St. Louis, ss Approximately 22 employees attended the meeting. " It is not disputed that the Company gave a 10-cent-per-hour raise to its employees after 6 May. as Company Consultant Daniel contends Mediator Duggms had a "misimpression" that a meeting was agreed to for 21 October. Daniel, however, acknowledged Duggins called him (he was uncertain of the date because he failed to bring his notes to court) and wanted to know "what in the hell was going on" and why the meeting had been canceled. Notwithstanding Daniel's testimony , I am persuaded Duggms arranged for and all parties agreed to a 21 October meeting. as Jett could not explain how it came to be but notice of the 21 Octo- ber meeting appeared in an area newspaper. Missouri office telling her the Company had withdrawn its recognition of the Union.24 Jett testified his superiors instructed him to have the employees continue to strike until the Union's legal department could tell him what to do. Thereafter, on 28 October, Jett sent the following tele- gram to the Company: The Aluminum Brick and Glass Workers Interna- tional Union AFL-CIO CLC on behalf of Local 904 hereby accepts the Company's last offer which includes a 10 cent per hour wage increase , an incen- tive plan and increased insurance at a later date, in- creased funeral pay and the agreed to contract lan- guage, we are prepared to return to work immedi- ately. If you have any questions, contact myself or Sylvester Hayden. On 28 October Chief Executive Officer Cathey sent the following letter to International Union Representa- tive Jett: As I stated to you in our letter of October 18, 1985, we no longer recognize your union as the bar- gaining agent for our employees. Accordingly, your offer to modify our expired contract proposal and then to accept it as a binding agreement is denied. On 12 November the 28 remaining strikers ended the strike. D. Analysis and Conclusions 1. The withdrawal of recognition The Board, in Burger Pits, Inc., 273 NLRB 1001 (1984), set forth the following succinct statement of legal principles governing an employer 's withdrawal of recog- nition of a union: It is well settled that absent unusual circum- stances a union enjoys an irrebuttable presumption of majority status during the first year following its certification. After the certification year the pre- sumption of majority status becomes rebuttable. Whether certified or voluntarily recognized, a union also enjoys a rebuttable presumption of majority status upon the expiration of a collective-bargaining agreement. An employer who refuses to bargain with an incumbent union may rebut the presump- tion of majority status by establishing either (1) that at the time of the refusal to bargain the union in fact did not enjoy majority status, or (2) that the re- fusal was predicated on a good-faith and reasonably grounded doubt, supported by objective consider- 84 The Company's letter to International Union President Lawrence A. Holly in Bridgeton, Missouri, dated 18 October, signed by Chief Execu- tive Officer Catbey, reads as follows : "All existing circumstances lead us to the conclusion that the Union no longer represents a majority of our employees . Therefore, we hereby withdraw recognition of your union as their bargaining agent." ASHE BRICK CO. ations, of the union's majority status. [Footnotes omitted.] It is also well established Board law that an employer may not avoid its duty to bargain by relying on a loss of majority status attributable to its own unfair labor prac- tices. Master Slack Corp., 271 NLRB 78 at 84 (1984). The Company does not contend nor has it been dem- onstrated that the Union, in fact, lost its majority status. There is no contention the Company engaged in any unfair labor practices prior to the withdrawal of recogni- tion . Therefore, examination of the instant case turns to the Company's contention that it had a reasonably grounded good-faith doubt of the Union's continued ma- jority status. Chief Executive Officer Cathey testified about the withdrawal of recognition as follows: Q. (By company counsel) Why did you withdraw recognition from the Union? A. (Chief Executive Officer Cathey) On July 15th, the last meeting that we held. Leonard Dug- gins and Jessie Sprinkle came into the room, which we had rented for these meetings , and Leonard Duggins said , that there has been no change in the Union's position. They are maintaining that they are going to have check off and that all of the strikers would come back or none of the strikers would come back. And, Leonard Duggins said at that point, I see no reason for us to stay here any longer. He told us to leave and I assume he told the strik- ers. On cross-examination, Cathey stated he based his belief that the Union had lost its majority status on the fact he did not hear from anyone with the Union from 15 July until late October. Cathey stated South Carolina State Mediator Sprinkle contacted him during that time and that Company Consultant Daniel informed him Federal Mediator Duggins had contacted him.25 Cathey also stated , on cross-examination , that in addition to not hear- ing from the Union "it seemed [to him] like [the Union] did not represent the majority of [the] employees at that time." Cathey stated he based his feelings on the employ- ee "spirit" he observed in the plant. Cathey said he measured "the spirit in the plant" in the following manner: Well, I think you know what I mean, when the em- ployees whistle and they show up on time, they work hard and your production is more than it was in . . . the same time last year , there must be a pretty good attitude in the plant. Our production was up not down. Cathey also stated, "It looked to me like [the striking employees] were fighting a pretty lonely cause out there." Cathey stated he did not talk with any employees about the Union and none of them ever told him they 25 Cathey stated he thought Duggins also contacted him during that same time period . Cathey acknowledged he went through the gates where the strikers were during that time on an almost daily basis. 1389 wanted to resign from the Union or that they were dis- satisfied with the Union. The Company's contention that it had a good-faith and reasonably grounded doubt of the Union's continued ma- jority status is without merit inasmuch as it failed to sup- port its doubt with any objective considerations . First, the Union is presumed to enjoy majority status at the ex- piration of the most recent collective -bargaining agree- ment. The Union demonstrated its majority support when 43 of the 58 unit employees went on strike the first day of the strike.26 Although the number of employees who continued to strike until it was over dwindled to 28, the Company never demonstrated any basis for its claimed good-faith doubt that the Union had lost its ma- jority status. Even if the Company's contentions are true that the employees who returned to work, as well as the strike replacements, "whistled" and "showed up for work on time" while those who remained on the picket line looked "lonely," such actions by the employees and observations by the Company are insufficient to support its claim of a good-faith doubt that the Union no longer represented a majority of its employees. The fact that some employees crossed the picket line and others, who had at first withheld their services, returned to work, does not establish a sufficient basis to support a with- drawal of recognition. The Board has long recognized that returning strikers may cross their union's picket line for numerous reasons unrelated to a repudiation of the Union. Employees may, for example, return for financial reasons, or their unwillingness to support the particular strike in progress. Strike replacements may also cross a picket line for similar reasons which do not warrant, standing alone, a presumption of rejection of the union as a bargaining representative. Pennco, Inc., 250 NLRB 716 (1980). See also Stormor, Inc., 268 NLRB 860 at 866 (1984). The Company failed to produce any evidence other than a spirited work force to demonstrate its good- faith doubt of the Union's continued majority status. No employees ever told anyone from management that they were dissatisfied with the Union or that they no longer desired the Union to represent them. There is, however, evidence to indicate that at least some of those who re- turned to work continued to support the Union because they, on a weekly basis, gave financial support to those employees who remained on strike. The Company's ap- parent contention that the Union abandon the negotia- tions or the striking employees is patently without merit. Although International Union Representative Jett did not directly contact the Company between 15 July and 28 October, he contacted the mediators throughout that time period. It had been the Union's practice throughout negotiations to deal with the Company only at negotiat- ing sessions or through the mediators . 27 It is undisputed 26 The Company contended at trial that the work force was 73 on the first day of the strike . However, in order to arrive at that number, the Company had to include 15 probationary employees who were, by the terms of the most recent collective-bargaining agreement , specifically ex- cluded from the bargaining unit. Even if the employee complement Was 73, the Union still demonstrated majority support at the beginning of the strike. 27 Company Consultant Daniel acknowledged, on cross-examination, that Mediator Duggins called him every other week trying to get the parties together. 1390 DECISIONS OF NATIONAL LABOR RELATIONS BOARD that after 15 July International Union Representative Jett contacted Local Union President S. Hayden once or twice a week. Finally, no support for the Company's good-faith doubt of the Union's continued majority status can be found in the alleged statement attributed to International Representative Jett-that if a strike occurred the Compa- ny would not be hurt because only 8 to 10 employees would join the strike-because no such statement was ever made.28 In light of all of the above I am persuaded and find the Company has failed to meet its burden of establishing a good-faith doubt based on objective considerations of the Union's majority status at the time it withdrew rec- ognition of the Union. Accordingly, I find the Company violated Section 8(a)(5) and (1) of the Act by withdraw- ing recognition of the Union on 18 October. 2. Whether there was an agreement and a failure to execute it Section 8(d) of the Act requires the parties to a collec- tive-bargaining relationship to execute "a written con- tract incorporating any agreement reached if requested by either party." H J. Heinz Co. v. NLRB, 311 U.S. 514 (1941). A principal question that must be addressed is whether the parties actually reached an agreement. A re- lated question , in cases such as the one sub judice, relates to the role of "offer and acceptance" in a collective-bar- gaining setting as opposed to traditional contract law. Normally, under the traditional rules of contract law, an offer once rejected ceases to exist . However, the Board and courts have held that is not the case in labor law. The court, in Pepsi-Cola Bottling Co. v. NLRB, 659 F.2d 87 (8th Cir. 1981), considered the question of whether in negotiating a collective-bargaining agreement an uncon- ditional offer remained open to acceptance after the other party had rejected the offer and/or had submitted counterproposals. The court in granting enforcement of the Board's Order in Pepsi-Cola stated: The rule is well established that technical rules of contract law do not control whether a collective bargaining agreement has been reached. In a private commercial setting, the parties vol- untarily contract with each other. Traditional con- tract law therefore provides that an offer terminates if rejected by the offeree, thus allowing the offering party free to strike a bargain elsewhere, with no danger of being bound to more than one contract. In contrast, the National Labor Relations Act com- pels the employer and the duly certified union to deal with each other and to bargain in good faith. Upon rejection of an offer, the offeror may not seek another contracting party. As explained by the Su- preme Court, "The choice is generally not between Sa Even if such a statement had been made it could not form the basis for a good-faith doubt of the Union's majority status at the time the Com- pany withdrew recognition of the Union because of certain intervening factors such as the fact that 43 employees went on strike the first day of the strike. entering or refusing to enter into a relationship, for that in all probability preexists the negotiations." United Steelworkers of America v. Warrior & Gulf Navigation Co., 363 U.S. 574, 580 (1959). Thus, the common law rule that a rejection or counterproposal necessarily terminates the offer has little relevance in the collective bargaining setting. In addition , this contract principle runs counter to federal labor policy which encourages the forma- tion of collective bargaining agreements . We there- fore agree with the Board's policy, as stated in its brief, that a contract offer is not automatically terminated by the other party's rejection or counterproposal, but may be accepted within a reasonable time unless it was expressly withdrawn prior to ac- ceptance, was expressly made contingent upon some condition subsequent, or was subject to in- tervening circumstances which made it unfair to hold the offeror to his bargain. Under this policy, an offer, once made, will remain on the table unless explicitly withdrawn by the of- feror or unless circumstances arise which would lead the parties to reasonably believe that the offer had been withdrawn. [Footnotes omitted.] From the above, it is clear that if an open-ended offer is made by one party, the other party may, for a reasona- ble period of time and absent intervening circumstances, accept that offer even if the party accepting the offer has earlier rejected the offer or has made counterproposals. In the instant case the Company offered the Union a complete contract package by as early as 3 May. Jett de- scribed the Company's package as a 1-year extension of the expired collective-bargaining agreement with certain additional modifications or agreements. Jett credibly stated the Company offered I additional day of funeral leave, a job bidding procedure, better insurance when the then current policy expired, and an incentive pay plan. The specifics of the incentive pay plan were dis- cussed on 15 May and the Company's written proposal was provided to the Union at least by 31 May. There was, without question, a complete package of company proposals on the bargaining table as of 28 October. The Union had, during negotiations , rejected outright some of the Company's proposals and had made counterpro. posals of its own. However, there is no evidence the Company ever withdrew its package of proposals prior to the Union's acceptance of its proposals on 28 October. The Union's acceptance of the Company's proposals was "in toto" and it did not, by its 28 October telegram, insist on anything other than what the Company had of- fered in negotiations, or had provided to its employees who continued to work during the strike. The Union's mention, in its acceptance telegram of a 10-cent -per-hour wage increase, was not a new proposal on its part, but rather was a reminder to the Company that it had grant- ed an across-the-board wage increase to all employees and as such the employees returning to work from the strike would be entitled to such an increase. The Union's mention in its telegram of the agreed -upon contract lan- ASHE BRICK CO. guage and the incentive pay plan were simply references to the Company's two written proposals-its initial con- tract proposal and its separate proposal on incentive pay. It is true the Union had first rejected the Company's in- centive pay plan, but nothing would preclude the Union from changing its position and accepting that plan. The Union's mention, in its telegram of an additional day of funeral leave, was nothing more than a reference to something the parties had agreed on early in negotia- tions . The Union's mention of increased insurance was a reference to the Company's offer made early in negotia- tions to obtain "better insurance" for the unit employees when the Company's then current policy expired.29 From all the above, it is clear that the Union, on 28 Oc- tober, unequivocally accepted, without modification, s o the Company's complete contract packages" at a time when its proposals had not been withdrawn from the bargaining table.32 By the Union's acceptance of the Company's outstanding offer, an enforceable contract was formed and the Company was thereafter obligated to execute and abide by that contract. Its failure to do so is a violation of Section 8(a)(5) and (1) of the Act.33 3. Damages as a condition to signing a contract It is without dispute that Company Consultant Daniel told International Union Representative Jett that the Union would have to pay $30,000 to the Company as compensation for damages before the Company would sign a contract with the Union. The Union rejected this demand. S4 The subject of compensation for damages to a compa- ny's property is a permissive, nonmandatory, subject of bargaining . That is, it is a subject that is outside the scope of "wages, hours, and other terms and conditions 29 It is recognized that specific details pertaining to the new insurance coverage were not worked out. However, an absence of administrative details in a proposal is not an impediment to a finding that an agreement has been arrived at. 30 I note the Union's acceptance telegram did not demand as a precon- dition to an agreement that all striking employees be returned to work The telegram merely reflected that the striking employees were prepared to return to work i The Union accepted all the Company 's proposals except its proposal that the Union pay $30,000 for alleged damages to company property caused by some unknown person or persons . I have addressed that par- ticular issue elsewhere in this decision. 32 The Company 's complete package includes its initial contract pro- posals (G.C Exh. 4), its incentive pay proposals (G.C. Exh. 5); one ad- dional funeral leave day , a "better insurance" plan to be obtained by the Company, and the 10-cent-per-hour wage increase given to all other em- ployees. 99 Although the Union 's acceptance of the Company's offer came ap- proximately 3-1/2 months after the parties ' last formal bargaining session, I do not, under the circumstances of this case, find that to be an unrea- sonable time for the offer to be considered open and available for accept- ance . The parties were , during that 3-1/2 month period of time, in con- tract with the Federal and state mediators who were attempting to bring about movement between the parties so that an agreement could be ar- rived at The Company could have, at any point during that period of time, informed the Union through the mediators , or otherwise, that it was withdrawing its offer . The Company, however, did not do so. The Com- pany has not presented any evidence of any intervening circumstances which would make it unfair to hold it to its bargain. 34 Jett stated he rejected the Company 's demand because he did not believe the Union was responsible for the alleged damages As noted else- where in this decision , the Company was unable to offer any proof re- garding who was responsible for the damages. 1391 of employment." Insistence upon agreement on a non- mandatory matter or provision as a prerequisite to exe- cuting an agreement constitutes a per se violation of Sec- tion 8(a)(5) of the Act. Accordingly, I fmd the Compa- ny, through its agent Daniel about 15 May, violated Sec- tion 8(a)(5) and (I) of the Act by conditioning the sign- ing of an agreement on the Union paying compensation to the Company for damages of an undetermined cause.sb 4. The conversion of the economic strike to an unfair labor practice strike As is set forth elsewhere in this decision, certain of the Company's employees went on strike on 6 May because the Company and Union were unable to agree on a col- lective-bargaining agreement . The strike was an econom- ic strike. On 18 October the Company, by letter, unlaw- fully withdrew recognition of the Union as the exclusive bargaining representative of its employees in an appropri- ate unit. The Union, in a telegram dated 28 October, made an unconditional offer on behalf of the striking em- ployees to return to work. The strike actually continued until 12 November. The General Counsel contends the Company's unlawful withdrawal of recognition on 18 October converted the economic strike to an unfair labor practice strike. The Company's unlawful withdrawal of recognition precluded the possibility of the parties enter- ing into a collective -bargaining agreement . Accordingly, I fmd in agreement with the General Counsel that the economic strike was converted to an unfair labor prac- tice strike on 18 October. See Wilder Construction, 276 NLRB 977, 982 ( 1985). The General Counsel, at trial herein, asserted in his opening statement that all striking employees had been permanently replaced by mid-May. The General Counsel renewed that contention in his posttrial brief . Inasmuch as it is the position of the General Counsel that all strik- ing employees had been permanently replaced prior to the time the strike was converted from an economic to an unfair labor practice strike, I shall not direct the usual Board remedy which would require the Company to re- instate upon unconditional request all striking employees who had not been permanently replaced before the date the strike became an unfair labor practice strike. I shall, however, direct that the Company place all employees that were on strike at the time it was converted to an unfair labor practice strike on a preferential hiring list, based on seniority or some other nondiscriminatory test, for employment if suitable jobs become available.36 On the foregoing factual findings and conclusions, I reached the following as I am persuaded the Company 's insistence on this permissive matter did not impede the Union from accepting, as it did, the Company 's other contract proposals. 36 For a discussion of the remedies available to unfair labor practice stri kers, see generally Sanderson Farms, 271 NLRB 1477 at 1482 ( 1984). 1392 DECISIONS OF NATIONAL LABOR RELATIONS BOARD CONCLUSIONS OF LAW 1. Ashe Brick Company is an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act. 2. Aluminum Brick and Glass Workers International Union, Local Union #904, AFL-CIO, CLC is a labor organization within the meaning of Section 2(5) of the Act. 3. The following unit is appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act: All full-time production, maintenance and shipping employees, truck drivers and helpers employed at the Employer's Van Wyck, South Carolina plant; but excluding clerical and office employees, drafts- men, subcontractors and their employees , technical and professional employees , guards and supervisors as defined in the Act. 4. Aluminum Brick and Glass Workers International Union, Local Union #904, AFL-CIO, CLC has been the exclusive bargaining representative of the Company's employees in the above -described bargaining unit at least since 1 September 1981, and continues to remain such representative for the purposes of collective -bargaining with respect to rates of pay, wages, hours of employ- ment, and other terms and conditions of employment of those employees. 5. By, about 15 May, conditioning the signing of a col- lective-bargaining agreement on the Union paying for damages of an undetermined cause, the Company violat- ed Section 8(a)(5) and (1) of the Act. 6. By withdrawing recognition on 18 October and by refusing to recognize or bargain with the Union since that date, the Company has violated Section 8(a)(5) and (1) of the Act. 7. The strike, which began as an economic strike on 6 May, was converted to an unfair labor practice strike on 18 October, the date the Company unlawfully withdrew recognition of, and refused to bargain with, the Union. 8. By refusing about 28 October to execute the written contract embodying the full and complete agreement reached by the parties, the Company violated Section 8(a)(5) and (1) of the Act. THE REMEDY Having found that the Company has engaged in cer- tain unfair labor practices , I find it necessary to order it to cease and desist and to take certain affirmative actions designed to effectuate the policies of the Act. Having found that the Company violated the Act by withdrawing recognition of the Union and by refusing to bargain with the Union as the exclusive bargaining repre- sentative of its employees in an appropriate unit, I shall recommend the Company be ordered to recognize and on request bargain in good faith with the Union as the exclusive bargaining representative of its employees in the appropriate unit. Additionally, as I have found that the Company violated its obligations under the Act by refusing to execute a contract embodying the terms of the agreement it reached with the Union, I shall recom- mend it be ordered on request to sign such an agreement. It is recommended that the Company be required to give retroactive effect to the terms of the agreement to its ef- fective date (28 October) and to make whole its employ- ees for any losses they may have suffered as a result of the Company's refusal to sign such an agreement in ac- cordance with the formula set forth in F W. Woolworth Co., 90 NLRB 289 (1950). All monetary redress shall bear interest as authorized by Florida Steel Corp., 231 NLRB 651 (1977).37 It is also recommended that the Company be ordered to post the attached notice to em- ployees marked "Appendix" for a period of 60 days. On these findings of fact and conclusions of law and on the entire record, I issue the following recommend- edSs ORDER The Respondent, Ashe Brick Company, Van Wyck, South Carolina, its officers, agents, successors, and as- signs, shall 1. Cease and desist from (a) Refusing to recognize and bargain in good faith with Aluminum Brick and Glass Workers International Union, Local Union #904, AFL-CIO, CLC as the exclu- sive representative of its employees in the following unit: All full-time production, maintenance and shipping employees, truck drivers and helpers employed at the Employer's Van Wyck, South Carolina plant; but excluding clerical and office employees, drafts- men, subcontractors and their employees, technical and professional employees, guards and supervisors as defined in the Act. (b) Refusing to bargain in good faith by failing and re- fusing to execute the collective-bargaining agreement agreed on by the Company and the Union. (c) Conditioning the signing of a collective-bargaining agreement on a nonmandatory subject of bargaining, namely, that the Union pay the Company for damages of an undetermined cause. (d) In any like or related manner interfering with, re- straining, or coercing employees in the exercise of the rights guaranteed them by Section 7 of the Act. 2. Take the following affirmative action necessary to effectuate the policies of the Act. (a) Recognize and, on request, bargain in good faith with the Union as the exclusive bargaining representative of its employees in the unit described above. (b) On request by the Union forthwith execute the col- lective-bargaining agreement upon which agreement was reached with the Union. (c) Give retroactive effect to the terms and conditions of employment of the collective-bargaining agreement and make whole its employees for any losses they may 59 See generally his Plumbing Co., 138 NLRB 716 (1962). 38 If no exceptions are filed as provided by Sec . 102.46 of the Board's Rules and Regulations, the findings, conclusions , and recommended Order shall , as provided in Sec. 102 48 of the Rules , be adopted by the Board and all objections to them shall be deemed waived for all pur- poses. ASHE BRICK CO. 1393 have suffered by reason of the Company 's failure to sign the agreement. (d) Place on a preferential hiring list , by seniority or some other nondiscriminatory test, all employees who were on strike on the date the strike was converted from an economic to an unfair labor practice strike. (e) Preserve and , on request , make available to the Board or its agents for examination and copying , all pay- roll records, social security payment records, timecards, personnel records and reports , and all other records nec- essary to analyze the amount of backpay due under the terms of this Order. (f) Post at its Van Wyck, South Carolina facility copies of the attached notice marked "Appendix."39 Copies of the notice , on forms provided by the Regional S° If this Order is enforced by a judgment of a United States court of appeals , the words in the notice reading "Posted by Order of the Nation- al Labor Relations Board" shall read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." Director for Region 11, after being signed by the Com- pany's authorized representative, shall be posted by the Company immediately upon receipt and maintained for 60 consecutive days in conspicuous places including all places where notices to employees are customarily posted. Reasonable steps shall be taken by the Company to ensure that the notices are not altered, defaced, or covered by any other material. (g) Notify the Regional Director in writing within 20 days from the date of this Order what steps the Re- spondent has taken to comply. For the purpose of deter- mining or securing compliance with this Order, the Board, or any of its duly authorized representatives, may obtain discovery from the Company, its officers, agents, successors, or assigns, or any other person having knowl- edge concerning any compliance matter, in the manner provided by the Federal Rules of Civil Procedure. Such discovery shall be conducted under the supervision of the United States Court of Appeals enforcing this Order and may be had on any matter reasonably related to compliance with this Order, as enforced by the court. Copy with citationCopy as parenthetical citation